Trader Paul

Select Comfort (SCSS)

Company. "Select Comfort was founded by an inventor and former innerspring mattress maker who simply wanted a better night's sleep. He created a mattress that uses air chamber technology, the best medium for providing comfort and support, with the unique attribute of personalized adjustability." selectcomfort.com

select comfort stock chart
gain Bottom line
44%
for these shares, 42.6% overall

Buy. I bought SCSS in January 2003 after watching it steadily rise since September of 2002. Duh!

Sell. Earlier this month, I sold half my shares, following my bird-in-the-hand instincts. At the time, I guessed that the stock would continue to rise, and it did. It reached as high as $18 per share in mid-June, nearly $2 more than my first sale. Greed is so motivating: if $18 is good, more than $18 would be better! I held.

Since then, the price has fallen gradually, and the ADX indicator has shown a weakening of the trend. In the face of this, and the general squirreliness of the market, I placed a stop-order to sell the remaining shares if the price fell to $16.50. It did; the order was activated; the shares sold.

I can only repeat what I said before: I suspect the stock will soon reverse course and continue to rise. The decline in prices has been on lighter than average volume, and on balance, more money is flowing into the stock than out (money flow indicator not shown on chart). Nevertheless, I once again apply the bird-in-the-hand principle. Earnings Season is fast approaching, and it would take only a "pre-announcement" or an analyst's comment to send the stock reeling.